Clean Power Hydrogen (AIM:CPH2) has concluded it lacks the financial and engineering resources to complete full manufacturing and retesting of its MFE220 1MW electrolyser following an incident on 28 May that caused structural damage to the unit during the third and final stage of factory acceptance testing.
The UK-based green hydrogen technology company said an initial internal assessment points to a hydrogen-oxygen mixture igniting during an automated depressurisation, causing a loss of containment, though the detailed root cause remains under investigation with a formal technical report expected by 31 August.
Critically, CPH2 confirmed its proprietary membrane-free stack and separators were not the cause, and no personnel were injured.
The company will now pivot to a capital-light model centred on licensing its intellectual property, which covers 16 granted patents across 12 jurisdictions including the United States, Japan, India and the Middle East, with a further 17 patents pending, plus existing licensing agreements with three companies spanning 12 countries.
Richard Scott, previously Chief Commercial Officer, will assume the role of Chief Executive Officer to lead the new strategy, with James Hobson remaining as Chief Financial Officer.
CPH2 said discussions with interested manufacturing partners are ongoing but non-binding, and it continues to work with insurers on a potential claim related to the testing incident.
The root cause report, due by 31 August, will determine the basis for any remedial design changes.
